XML 33 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Business Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
 
The Company operates in two segments: North America and International. Corporate operating expenses are not included in either of the segments and are presented separately as a reconciling item to consolidated results. These segments are strategic business units that are managed separately based on geography. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S. and Canada. The International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. The Company evaluates segment performance based on net sales, gross profit and operating income.

The Company’s North America and International segment assets include investments in subsidiaries that are appropriately eliminated in the Company’s accompanying Condensed Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable and payable.

The following table summarizes total assets by segment:

(in millions)September 30, 2020December 31, 2019
North America$3,595.8 $3,142.9 
International647.6 615.3 
Corporate582.8 477.1 
Inter-segment eliminations(1,370.8)(1,173.5)
Total assets$3,455.4 $3,061.8 

 The following table summarizes property, plant and equipment, net, by segment:

(in millions)September 30, 2020December 31, 2019
North America$390.2 $328.9 
International52.3 51.8 
Corporate43.3 55.1 
Total property, plant and equipment, net$485.8 $435.8 
     
The following table summarizes operating lease right-of-use assets by segment:

(in millions)September 30, 2020December 31, 2019
North America$261.5 $202.0 
International41.9 42.2 
Corporate2.2 1.2 
Total operating lease right-of-use assets$305.6 $245.4 
The following table summarizes segment information for the three months ended September 30, 2020:

(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$976.5 $155.8 $— $— $1,132.3 
Inter-segment sales$0.2 $0.3 $— $(0.5)$— 
Inter-segment royalty expense (income)2.5 (2.5)— — — 
Gross profit438.6 91.6 — — 530.2 
Operating income (loss)231.5 44.8 (96.1)— 180.2 
Income (loss) from continuing operations before income taxes229.9 44.1 (114.3)— 159.7 
Depreciation and amortization (1)
$19.6 $3.6 $73.6 $— $96.8 
Capital expenditures20.2 2.0 2.0 — 24.2 
(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the three months ended September 30, 2019:

(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$682.0 $139.0 $— $— $821.0 
Inter-segment sales$0.6 $— $— $(0.6)$— 
Inter-segment royalty expense (income)1.2 (1.2)— — — 
Gross profit286.8 73.8 — — 360.6 
Operating income (loss)119.8 27.3 (26.5)— 120.6 
Income (loss) from continuing operations before income taxes117.8 24.0 (43.3)— 98.5 
Depreciation and amortization (1)
$17.1 $3.4 $9.5 $— $30.0 
Capital expenditures15.0 2.0 5.0 — 22.0 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the nine months ended September 30, 2020:

(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$2,224.2 $395.7 $— $— $2,619.9 
Inter-segment sales$1.1 $0.4 $— $(1.5)$— 
Inter-segment royalty expense (income)4.6 (4.6)— — — 
Gross profit932.0 221.2 — — 1,153.2 
Operating income (loss)402.3 81.0 (144.4)— 338.9 
Income (loss) from continuing operations before income taxes397.5 76.2 (197.0)— 276.7 
Depreciation and amortization (1)
$55.8 $10.3 $93.0 $— $159.1 
Capital expenditures59.6 7.5 6.5 — 73.6 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the nine months ended September 30, 2019:

(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$1,814.1 $420.6 $— $— $2,234.7 
Inter-segment sales$2.5 $0.4 $— $(2.9)$— 
Inter-segment royalty expense (income)3.2 (3.2)— — — 
Gross profit731.2 224.6 — — 955.8 
Operating income (loss)264.2 79.9 (82.0)— 262.1 
Income (loss) from continuing operations before income taxes258.8 77.0 (132.9)— 202.9 
Depreciation and amortization (1)
$47.7 $10.2 $28.8 $— $86.7 
Capital expenditures42.3 8.0 11.6 — 61.9 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes property, plant and equipment, net by geographic region:
(in millions)
September 30, 2020December 31, 2019
United States
$418.0 $366.4 
Canada
15.5 17.5 
Other International
52.3 51.9 
Total property, plant and equipment, net
$485.8 $435.8 
Total International
$67.8 $69.4 

The following table summarizes operating lease right-of-use assets by geographic region:
(in millions)September 30, 2020December 31, 2019
United States$260.0 $198.3 
Canada3.7 4.9 
Other International41.9 42.2 
Total operating lease right-of-use assets$305.6 $245.4 
Total International$45.6 $47.1 

The following table summarizes net sales by geographic region:
Three Months EndedNine Months Ended
 September 30,September 30,
(in millions)2020201920202019
United States$904.3 $621.4 $2,078.8 $1,652.3 
Canada72.2 60.6 145.4 161.8 
Other International155.8 139.0 395.7 420.6 
Total net sales$1,132.3 $821.0 $2,619.9 $2,234.7 
Total International$228.0 $199.6 $541.1 $582.4